This invention relates to methods and apparatus for carrying out a cash transaction utilizing an integrated circuit card, also known as a smart card, with a cash token stored in the card.
One of the uses of smart cards that is currently being considered is the electronic purse. This concept involves storing cash token information in the smart card. The cardholder then uses the Electronic Purse to make cash purchases. The Electronic Purse smart card is inserted into a terminal at a transaction station to indicate payment by cash stored on the smart card. The value of the cash purchase is subtracted from the Electronic Purse and added to an electronic cash file of the merchant for later settlement with a bank. The preferred Electronic Purse system permits upward revaluation of the cash token using special terminals and ATM systems. The goal of an Electronic Purse system is to be a substitute for carrying money tokens in the form of government issued paper bills and metal coins- one Electronic Purse smart card in the wallet or purse instead of a wad of paper bills and a pocketful of change.
To achieve acceptance, an Electronic Purse system must be at least as convenient as obtaining, carrying and using paper and metal money, and preferably, more convenient. Several challenges must be met to achieve this level of convenience:
1. System elements must make it easy to add cash value to the Electronic Purse- at least as easy as obtaining paper money from an ATM. Greater than ATM access would promote widespread acceptance of the Electronic Purse.
2. System elements must make it easy for the holder of the Electronic Purse to `see` the amount of cash stored in the Electronic Purse before starting a purchase activity.
3. System elements must make completing an Electronic Purse transaction at least as easy as using paper and metal money.